The National Treasury and the Central Bank of Kenya (CBK) have released new data showing a worrying trend that Kenya’s financial inclusion has grown sharply, but financial health has taken a major hit.
The numbers show that while access to financial services has expanded from 26.7 per cent in 2016 to 84.8 per cent in 2024, the share of Kenyans who are financially stable has dropped from 39.6 per cent to 18.3 per cent.
The findings reveal that more Kenyans can access money, but many are unable to manage it in a way that supports daily needs, emergencies or long-term planning. This decline has been linked to rising debt, easy digital borrowing and increased gambling.
To address this, Kenya has launched the National Financial Inclusion Strategy (NFIS) 2025–2028, a four-year plan aimed at improving the quality of financial services and helping households use them more effectively.
Central Bank governor Kamau Thugge said the new strategy responds to structural problems that have left millions financially vulnerable.
“Over-indebtedness, gambling and weak consumer protection undermine financial health, especially among youth and low-income households,” he said.
Kenya’s inclusion boom has mainly been driven by mobile money, which now reaches 82.3 per cent of adults. The growth of digital credit, agency banking, fintech partnerships and contactless payments has also played a key role.
But the same digital systems that increased access have also made it easy for people to take multiple short-term loans, often at high cost. Many end up trapped in a cycle of borrowing, late payments, default and blacklisting.
Gambling has further worsened financial instability, especially among young people. Instant mobile payments have made betting quick and constant, disrupting household budgets and creating unpredictable income patterns.
National Treasury Cabinet Secretary John Mbadi said the new strategy brings regulators, financial institutions, private sector innovators and development partners into a coordinated plan meant to solve these gaps.
He noted that although more people are connected to the financial system, many are not using products that build resilience.
“Only 36 per cent save through formal channels, and insurance usage remains low at 22 per cent. Many users rely heavily on mobile transfers, with limited uptake of savings, pensions, insurance or investment products designed to build resilience,” John Mbadi stated.
Adding;
“Among the plans we have is to increase the levels of savings from the current.”
Treasury Principal Secretary Chris Kiptoo said the NFIS will introduce large financial literacy programmes to help Kenyans learn to budget, manage credit, save, insure and invest. He emphasised that Kenya is shifting its focus from access to real financial well-being.
“Kenya’s new strategy is one of the first in Africa to explicitly make financial health, not access, the core outcome of inclusion policy. It attempts to shift the narrative from transactional access to meaningful usage, affordability, transparency and consumer empowerment.”
The strategy warns that success will depend on strong cooperation between the government and the private sector, backed by better regulations, improved digital infrastructure, reliable data and nationwide financial education.
It also highlights the need for “robust supervisory capacity” to protect consumers in an expanding digital finance environment.
Leave a comment